Page 225 - Essentials of Payroll: Management and Accounting

ESSENTIALS of Payr oll: Management and Accounting
Line 3. Enter the total amount of income taxes withheld on wages,
tips, taxable fringe benefits, and supplemental unemployment
compensation benefits.
Line 4. If there were errors in the reported amount of income taxes
withheld from previous quarters of the same calendar year, enter
the adjustments on this line.Adjustments to reported quarters in
previous years are not allowed. The amount of any adjustment
must also be included on line 17, and itemized separately on
Form 941c,“Supporting Statement to Correct Information.”
Line 5. Net line 4 against line 3, and enter the merged amount on
this line.

Line 6. Enter the amount of all wages paid on line 6a, except tips
that are subject to Social Security taxes. For the year 2002, this
would be all wages up to $84,900. Multiply this figure by the
Social Security tax rate of 12.4 percent,and enter the tax on line
6b. Enter the same information for tip wages on line 6c, and the
tax due on line 6d.

Line 7. Enter the amount of all wages and tips subject to Medicare
taxes; there is no upper wage limitation on the amount subject
to this tax. Then multiply the result by the Medicare tax rate of
2.9 percent and enter the tax due on line 7b.
Line 8. Summarize all taxes due from lines 6 and 7.

Line 9. Enter any adjustments to the reported amounts of Social
Security and Medicare taxes previously listed on lines 6 and 7.
These adjustments can include the uncollected employee share
of tip taxes, adjustments for the employee share of Social
Security and Medicare taxes on group term life insurance pre-
miums paid to former employees, and adjustments for the
employee share of taxes withheld by an independent provider of
sick pay. An accompanying statement should itemize these
adjustments.

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